With Japan’s entry into the war and the direct threat this posed, it was quickly decided that the Albatross may need to be joined by another carrier. To this end, a two pronged strategy was developed. Firstly, both Great Britain and the USA were approached to see whether an already built carrier could be acquired. Secondly, construction of a home grown carrier would begin in Australia. If possible, it was hoped that the home grown carrier would be largely identical to that acquired overseas.
With both Great Britain and the USA wanting such ships for their own use, the efforts to acquire a new carrier were at first difficult. Eventually though, the USN agreed to transfer the newly commissioned USS Card (CVE-11, a Bogue class escort aircraft carrier) to the RAN. This was renamed the HMAS Kookaburra and entered service at the end of January 1943.

Concurrent to this, the Cockatoo Dockyard started planning to build a similar ship. In March it was decided to change the design of this ship to match that of the follow-on Casablanca class. This ship was named the HMAS Magpie and would be launched in October 1943.

To equip the new ships, the RAN at first ordered more Sea Boomerangs and Sea Wirraways. However, it was also decided that the ability to use aerial torpedo bombers would be desirable. With the Sea Wirraway unable to carry a torpedo, an alternative aircraft was sought. Coincidently, in early 1942, the RAAF had also identified the need for a new attack aircraft. The Commonwealth's Department of Aircraft Production’s (DAP) new Beaufort bombers were entering service, but it was thought that something between it and the Wirraway was also needed. With the need to introduce such an aircraft quickly, it was again decided to look to either building or modifying an existing design. The choice would be surprising.
At the time, a large number of Fairey Battles were being introduced to the RAAF in the training role. Engineers at DAP were now asked to see if they could modify the Battle design to produce a new attack aircraft. They leapt to the challenge and by August, 1942 they had produced their design. This largely kept the Battle’s fuselage and wing but reduced the crew to 2 (pilot and gunner). The engine was slightly uprated and numerous modifications were made to lighten and simplify the design. The RAAF however had changed its mind in the meantime and now no longer wished to purchase the aircraft.

With the RAN’s need for a new torpedo bomber, DAP now offered the design to the RAN. Unlike the RAAF, the RAN decided to purchase the aircraft as the DAP N-7 Wandabaa (aboriginal for Eaglehawk). The first of these were introduced in February 1943 aboard the HMAS Kookaburra. Six months after this, DAP introduced an improved version. This was powered by the same Bristol Taurus 14-cylinder radial engines as used on the DAP Beauforts and included a pair of 20mm cannon in the wings. Although based upon the less than successful Fairey Battle, the Wandabaa was liked by its crews and provided a useful capability throughout 1943 and the early months of 1944. Operating from both the Albatross and the Kookaburra as well as occasionally from land bases, RAN Sea Wirraways and Wandabaas soon made their selves felt with attacks against Japanese shipping and land forces.
